“The local council has successfully completed projects to upgrade the town’s promenade and reinvigorate its tram system.

“There is no better time, then, to introduce one of our fastest-growing brand in the UK, to one of Britain’s best known destinations.”

Paul Mathison, managing director of Create Developments said: “As Blackpool regenerates and flourishes, we are confident this hotel will be at the forefront of that transformation.”

Coun Mark Smith, Blackpool Council’s cabinet member for economic development, added: “We’re delighted to welcome Hampton by Hilton to Blackpool, which will offer a new quality accommodation option for the millions of families who visit the resort every year.”

The announcement follows the sale of the Imperial Hotel in North Shore for £12.8m, and progress by Premier Inn towards revelopment of the Yates’s site in Blackpool.